TiE PPT

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Synectics

• Set up in 1995 in Bangalore
• Focussed on Branch Automation for Banks using PC
  technology
• Funded by the founders 3 key guys (management,
  technology and sales)
• Opportunity envisioned
• Majority of the banks were using IBM mini and
  mainframes
• Front end terminals were block mode dummy
  terminal
• PCs were fairly new and not trusted for running
  mission critical applications
• Started with a team of 10 with a office in the
  basement of a office building in Koramangala
• Grew to around 100 people in the next 3 years

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Right Team

• Set up by a core team of Banking technologists
  and marketing
• Successful track record of development and
  deployment of branch automation, signature
  verification, trade finance, SWIFT and treasury
  applications
• Understood the domain
• Business problem
• Understood the technology
• Best ways to address the problem
• Understood the market potential and competition
• How to get there
• Compete with the likes of Misys, Unisys, IBM,
  NCR, FNS ..

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Quick Rise

• Strived to build a product that differentiated
  from other products w.r.t quick deployment, easy
  customisation and enhancement, easy to use and
  better ROI
• Signed distribution agreement with a global
  conglomerate
• Better branding
• Customer confidence
• Right place at the right time
• Marketing costs
• Signed the first customer in mid 1996
• Major win (global order 22 countries)
• Signed multiple orders in India, Middle East and
  Far East in the next 2 years
• Won significant deals against Misys (Midas Kapiti
  Intl)

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Easy Prey

• Mid 1998
• Call from Misys CEO
• Interested in an collaboration for front end
  automation
• Team flew to Bangalore to review our products,
  team and processes
• Interested in the company acquisition
• Interest expressed to the distributor
  (contractual)
• Distributor equally interested in acquisition
• August 1998
• Company acquired by Logica Plc
• Forms Indian subsiduary
• Today is around 1500 people in Bangalore
• Executes one of the largest project for RTGS in
  India

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Decisions

• Took positive decisions
• Staff support
• Partner support
• Customer support
• Did a fair comparison of the offers
• Decide on which one is the best
• Pricing model
• Upfront cash
• P/E multiple versus revenue sharing for rest
• Golden handshake
• Period of earn out
• Future product growth
• Staff growth
• Relationship

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Thank You